Last week I profiled Palantir (PLTR) as your “Technology Stock of the Week” based on its position in the AI Services Industry. This week’s we’re taking another stock from the group, IBM (IBM).
Like Palantir, IBM has been on a strong bullish run, despite the weakness in other AI stocks like NVIDIA (NVDA), Microsoft (MSFT), and Alphabet (GOOGL).
IBM shares added 8% of value during the month of August, while all the other AI stocks fell 10 to 15%.
The reason is relatively simple. Expectations for AI service companies like IBM and Palantir have not reached exceedingly high levels like those AI chip companies.
These are the stocks that are taking the baton from the AI technology companies and getting ready to. Monetize the technology that's been developed over the last five years by implementing process, controls and services that use AI to help businesses become more efficient and profitable.
IBM shares are in the process of breaking above the psychologically significant $200 price level. The shares are trading with a bullish 50- and 200-day moving average, unlike the AI leaders or MAG seven companies.
IBM continues to trade in a strong long-term bull market trend with a price target of $300.
You might not think growth when you think Johnson & Johnson (JNJ), but that's exactly what the reorganized company is doing. Johnson and Johnson were the largest distributors in the healthcare field worldwide. Servicing healthcare facilities, hospitals, assisted living facilities and households.
Reorganizations over the last five years have refocused the business divisions. That focus in represented well by the stock that is now in a long-term bull market trend, ready to break to new all-time highs.
Shares moved back into a long-term bull market trend earlier in 2024 ad are preparing for a break above the $170 price level. That move alone will provide JNJ shares with the catalyst to hit a $200 price target by year-end.
Stocks associated with the real estate market are one of the beneficiaries of the Fed's upcoming interest rate cuts.
Companies like Redfin (RDFN) and Zillow (Z) are among those companies that see increased activity as prospective homebuyers rush into the market to find the “perfect” home.
Analysts are looking for two interest rate drops to put the 30-year mortgage back in a “sweet spot” that will trigger a land rush in the housing market as prospective buyers have been waiting for rates to make homebuying more affordable.
Expect to see some strength come to the market in November and December, but the real activity will happen in February through June of 2025 as the market is expected to go into overdrive.
That activity will trigger a huge rally for Housing-related stocks like Redfin, which is currently breaking out of the sub-$10 price range.
The move above $10 and upcoming demand for housing activity has moved Redfin into a new long-term bull market trend with a price target of $20.
Shares of Coca-Cola (KO) are doing exactly what you would expect it to do when fears of a recession begin to rise. It's rallying.
The stock has spent the last three months moving from $65 to $73 as investors have increased their appetite for Coca-Cola’s stock. The reason comes down to two factors.
First, Coke as a consumer staple company is considered a defensive position against markets. And economies that may be softening. Fears over the last few weeks of economic data revealing a possible recession are on the rise. Those fears helped drive Coca Cola's price higher.
Next, Coca-Cola is 2.8% dividend. As we know, the Fed is likely to take action next week by lowering interest rates for the first time in years. Those lower rates will put pressure on investors to find other yield bearing investments.
Coca Cola's year to date performance of 25% along with its 2.8% dividend yield, making an ideal growth income alternative.
Coca-Cola stock has been in a long-term bull market trend since January of 2024. Currently has a price target of $115.00.
Fears of softening economy have made their way to the energy markets.
Last week, shares of Chevron (CVX) fell from $145.00 to $138, breaking through significant price support.
While many investors are looking at the easing of tensions in the Middle East as the reason that the oil companies are trading lower, there's another reason behind the move.
Just as in 2021, we typically see weakness in energy companies ahead of weakness in the general market. It all comes down to supply and demand. If the economy is going to slow, it means there's less demand for energy, therefore oil companies move lower.
Chevron shares just broke below $140.00, which is the double bottom level from the lows in August. In addition, the stock just made what is referred to as a death pattern cross as its 50-day moving average crossed below its 200 day moving average.
This suggests that the long-term trend is going to see weaker momentum over the next four to six weeks, driving Chevron's price lower.
Chevron shares are in a long-term bear market trend. With a price target of $115.00.
